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20121103
20121103
STATION
CNBC 2
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Search Results 0 to 1 of about 2
CNBC
Nov 3, 2012 4:00am EDT
different. i got to help you this earnings season. i want to offer you a new way to use earnings season. day traders hijack a lot of the thinking. you're not trying to game the giving quarter. it's become so difficult to predict. and often the initial moves aren't even accurate because of the press conference or because something nasty just occurred in the overall market because of europe or something involved in the election. in other words, other than for those who are shorting or going long stocks ahead of the quarter, these earnings reports need a context to make you money. they can't be relied upon anymore because they aren't as predictive of future behaviors as they once were. they are a piece of the puzzle, a part of the mosaic. they are only one of very important parts of what predicts where a stock will go over the intermediate term. it is a teaching show. because i want you to know the metrics i'm using to pick stocks i talk about and recommend here you can follow along at cnbc.com. i want you to listen to these conference calls or read them in the transcripts. give you an opinion
CNBC
Nov 3, 2012 6:00am EDT
us through the trade. >> sure, so the stock gap 19% of earnings on october 23rd gave back about 15% of that. i think 20 is probably a floor regardless of that 777 million shares that come off lockup so here's a way to define your risk and play for a bounce right after that lockup. it could also be a good stock replacement strategy if you're long and worried about the volatility so today when the stock was about 21.15 and i did it in small size, a trade you want to pick out during the course of the week if you agree with me, if it was 21.15, i bought the 22, 24 call spread in november. those are the november 17th expiration calls so i bought one of the november 22 calls for 45 cents and sold one of the november 24 calls against it for a dime. cost me 35 cents. that's my maximum risk so i make money between 22.35 and 24 and 24. i make up to 1.65. about four times my money. above that i make the full 1.65. between 22 and 22.35 i lose up to that 35 cents and below 22 i lose that 35 cents. remember how this stock is moving around. it's not going to take a whole heck of a lot on the upsi
Search Results 0 to 1 of about 2